Thought for the day

Sales Managers Remain Confident US Economic Growth Will Continue into the Third Quarter


 
16 June 2024
 
The US Sales Managers Survey Results for May show a continuation of the levels of economic growth seen in previous months. All growth related Indexes suggest an expectation of continuing modest-to-good economic expansion, suggesting 1.5-2.0% real GDP growth is likely to continue into the third quarter of the year.

So far the great engine that is the American economy seems to be working well, largely untroubled by the significant rise in interest rates seen recently, or the continuing shadow of disturbance to the open liberal democratic economic systems that have powered growth since 1945.

US Prices Charged Index: May 2024
Diffusion Index. (50 = 'No Growth')
Sales Managers Remain Confident US Economic Growth Will Continue into the Third Quarter
The evidence presented by the May Sales Managers Survey suggests that the Federal Reserve's interest rate hikes have had at best a very modest restraining impact on economic activity levels. However, the Fed's efforts at simultaneously cutting price inflation seem to be working less well. The Sales Managers Price index continues to register relatively high monthly readings, suggesting that the dragon of Price Inflation has not yet been slain.
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